Cluster-Based Industrial Development Research Articles

Determinants of Innovation Frequency in SMEs: Evidence from Ambattur Industrial Cluster

Cluster-based industrial development has been pursued by policymakers in India. It emphasised an innovation-led path to development because of its potential of generating high-quality and technologically advanced jobs with decent wages. Continuous innovation is one of the main factors which can sustain competitive advantage in small and medium enterprises (SMEs). Hence in this article, we study how innovation frequency is influenced by various factors such as entrepreneurial characteristics, firm and its linkages with various stakeholders. The study was conducted among 160 randomly selected SMEs from the database of primary Association of Ambattur Industrial Cluster Members, AIEMA-Ambattur Industrial Estate Manufacturers Association. Primary data was collected through a structured questionnaire given to the decision-makers of each SME unit. Multinomial logistic regression was carried out on the data with innovation frequency as the dependent variable. The result of the study showed that factors such as entrepreneurial intention, entrepreneur type, firm’s life cycle, firm’s age, firm’s investment level and linkage with research institutions have a highly significant effect on innovation frequency and factors such as entrepreneur education, firm’s ownership structure, industry type, firm’s size and linkages with customers, government, universities, technical institutions also have a positive significant effect of increasing the innovation frequency.

English

This study deals with industrial policy, an issue that has been hotly debated in economic development. It argues that strategic and proactive industrial policy is a key to unlock the potential and wade through industrialization for low-income countries such as Ethiopia where market failures are pervasive. More specifically, it argues that industrial policy should be tailored to factors endowment structure. In the case of Ethiopia, as its economic structure is yet to transform substantially from agriculture to manufacturing, the current policy focus should be on labor-intensive sectors. Using the analytical framework of new structural economics supported with the primary survey data covering 80 manufacturing firms and secondary data sources, a comprehensive analysis has been conducted to explore the potentials, latecomer’s advantages, and the binding constraints of labor-intensive manufacturing industries in Ethiopia. Accordingly, it proposes five policy domains to unlock the labor-intensive manufacturing potentials of Ethiopia: Facilitating the linkage between agriculture and manufacturing industry along the value chain; fostering industrial park and cluster-based industrial development; strengthening the cooperation between government and the private sector; improving doing business environment; enhancing the industrial upgrading and diversification along with the changing endowment structure.   Key words: Industrial policy, industrialization, labor-intensive manufacturing, structural transformation.

Innovation and knowledge spillover: insights from the Ethiopian manufacturing industry

Knowledge plays a key role in technological advancement and structural transition. However, many manufacturing firms, especially in developing countries, struggle to source and reap the benefits of knowledge. Using a dual study approach of manufacturing firms in Ethiopia, this paper suggests that a strong national innovation system that facilitates knowledge spillover is important. The paper also suggests that joint venture, subcontracting, and cluster-based industrial development are alternatives to promote knowledge spillover, which in turn, strengthens knowledge transfer activities, especially technology-related knowhow, in developing countries. This, in turn, empowers manufacturing firms, especially in developing countries, to catch up and leap front to industry 4.0.

Cluster-Based Industrial Development: KAIZEN Management for MSE Growth in Developing Countries

Cluster-Based Industrial Development: KAIZEN Management for MSE Growth in Developing Countries

Differences in Management Practices and Productivity in Micro and Small Enterprises in Industrial Clusters

In recent years, several randomized controlled experiments as well as experiments that are not randomized have been conducted to assess the impacts of management training intervention on the productivity and other aspects of business performance of firms. Yet the role played by management improvement vis-à-vis that of technology transfer or borrowing in industrial development remains unclear. This paper attempts to narrow this gap by developing a heuristic model and reviewing experimental studies of management training and case studies of Micro and Small Enterprises (MSEs) in cluster-based industrial development. The paper argues among other things that the improvement of management provides the basis for successful technology transfer.

Cluster-based industrial development in contemporary developing countries and modern Japanese economic history

What are the similarities and dissimilarities in the pattern of cluster development between contemporary developing countries and modern Japanese economic history? This study attempts to examine the relevance of the Sonobe–Otsuka model, which is designed to explain the long-term process of cluster-based development in developing countries, for understanding the development process of silk-weaving clusters in prewar Japan. We discovered critical roles played by trade associations and local governments in internalizing the agglomeration economies in the development of the silk-weaving industry in Japan. We argue that further efforts are needed to explore the importance of trade associations and local governments in the development of industrial clusters in developing countries.

CLUSTER-BASED INDUSTRIAL DEVELOPMENT: A VIEW FROM EAST ASIA*

In this paper I attempt to formulate an endogenous model of cluster-based industrial development, based on case studies in Japan, Taiwan, and China, where the initiation phase is followed by the quantity expansion phase through imitation and subsequently by the quality improvement phase through innovation. I argue that such a process of industrial development is supported by the development of market transactions among assemblers, parts-suppliers, and merchants, and the stimulation of innovation made possible by the benefits of industrial clusters arising from the geographical concentration of a large number of enterprises and a variety of human resources in a small geographical area.

Industrial development in the inland region of China: A case study of the motorcycle industry

Although the inland region of China has generally been left behind in economic development compared with the coastal region, the motorcycle industry in Chongqing has recorded remarkable growth due to the meteoric rise of private enterprises over the last decade. Based on panel data of enterprises, we attempt to identify the factors behind the dynamic development of this industry. We conclude that the success of the motorcycle industry in Chongqing is attributable to a combination of positive features from the Wenzhou model in the 1990s, in which industrial development is based on clustering of private enterprises, and the Sunan model in the 1980s, in which industrial development is based on the effective use of human resources recruited from existing state-owned enterprises (SOEs). Learning by collective enterprises from SOEs in Chongqing coupled with the growth of the private enterprise sector fostered cluster-based industrial development. Journal of Comparative Economics 34 (4) (2006) 818–838.

Changing Roles of Innovation and Imitation in Industrial Development: The Case of the Machine Tool Industry in Taiwan

Previous articleNext article No AccessChanging Roles of Innovation and Imitation in Industrial Development: The Case of the Machine Tool Industry in Taiwan*Tetsushi Sonobe, Momoko Kawakami, and Keijiro OtsukaTetsushi SonobeFoundation for Advanced Studies on International Development Search for more articles by this author , Momoko KawakamiInstitute of Developing Economies Search for more articles by this author , and Keijiro OtsukaFoundation for Advanced Studies on International Development Search for more articles by this author Foundation for Advanced Studies on International DevelopmentInstitute of Developing EconomiesFoundation for Advanced Studies on International DevelopmentPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 52, Number 1October 2003 Article DOIhttps://doi.org/10.1086/380105 Views: 65Total views on this site Citations: 12Citations are reported from Crossref © 2003 by The University of Chicago. All rights reserved.PDF download Crossref reports the following articles citing this article:Juan Manuel Gil, Luis Angel Madrid, Carlos Hernán Fajardo IPRs and Innovation, Technology Transfer, and Economic Welfare, (Jan 2020): 1536–1568.https://doi.org/10.4018/978-1-5225-9273-0.ch074Sana Ullah, Muhammad Tariq Majeed, Muhammad Hafeez Education, experience, social network and firm survival: the case of the electrical fittings cluster in Sargodha, Pakistan, DECISION 46, no.33 (Apr 2019): 267–278.https://doi.org/10.1007/s40622-019-00209-6Juan Manuel Gil, Luis Angel Madrid, Carlos Hernán Fajardo IPRs and Innovation, Technology Transfer, and Economic Welfare, (Jan 2017): 91–131.https://doi.org/10.4018/978-1-5225-2319-2.ch004Babur Wasim Arif Education, Experience and Enterprise Development, Journal of South Asian Development 8, no.33 (Dec 2013): 273–299.https://doi.org/10.1177/0973174113504844Alhassan Iddrisu, Yukichi Mano, Tetsushi Sonobe Entrepreneurial Skills and Industrial Development: The Case of a Car Repair and Metalworking Cluster in Ghana, Journal of the Knowledge Economy 3, no.33 (May 2011): 302–326.https://doi.org/10.1007/s13132-011-0047-6Liang-Chih Chen The governance and evolution of local production networks in a cluster: the case of Taiwan’s machine tool industry, GeoJournal 76, no.66 (Oct 2009): 605–622.https://doi.org/10.1007/s10708-009-9317-2Yuichi Kimura Knowledge Diffusion and Modernization of Rural Industrial Clusters: A Paper-manufacturing Village in Northern Vietnam, World Development 39, no.1212 (Dec 2011): 2105–2118.https://doi.org/10.1016/j.worlddev.2011.04.017John Chen, David Parker Taiwan's Textile and Clothing SME Response to Globalization, Journal of Asia-Pacific Business 8, no.22 (Jul 2007): 89–111.https://doi.org/10.1300/J098v08n02_05Tetsushi Sonobe, Dinghuan Hu, Keijiro Otsuka Industrial development in the inland region of China: A case study of the motorcycle industry, Journal of Comparative Economics 34, no.44 (Dec 2006): 818–838.https://doi.org/10.1016/j.jce.2006.07.001KEIJIRO OTSUKA CLUSTER-BASED INDUSTRIAL DEVELOPMENT: A VIEW FROM EAST ASIA*, The Japanese Economic Review 57, no.33 (Sep 2006): 361–376.https://doi.org/10.1111/j.1468-5876.2006.00376.xTetsushi Sonobe, Keijiro Otsuka The Division of Labor and the Formation of Industrial Clusters in Taiwan, Review of Development Economics 10, no.11 (Feb 2006): 71–86.https://doi.org/10.1111/j.1467-9361.2005.00301.xTetsushi Sonobe, Dinghuan Hu, Keijiro Otsuka From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China, Journal of Comparative Economics 32, no.33 (Sep 2004): 542–563.https://doi.org/10.1016/j.jce.2004.05.001